Intro. to Applied GE Modeling

The student is first introduced to input-output models as a tool to understand the structure of an economy and the effect of closure assumptions. Moreover, it is convenient to start out with linear models as these are much more likely to converge than non-linear general equilibrium models. The exercises are made with data of Haiti. The text continues with a social accounting matrix of Kenya as an example of a general equilibrium model data base and relates the SAM to the input-output system.

The discussion of general equilibrium models begins with the Edgeworth box familiar to second-year students. The box is expanded into a 2-sector, 2-household model used to replicate results published in an academic journal. The replication is made repeatedly by various solution methods so that the student may be acquainted with the alternatives most suitable to the structure of a model. The basic two-sector model is then extended by introduction of more sectors and households, taxes, and trade. Exercises allow the student to build on past achievements and to ponder the implications of economic theory and its implementation.

The manual ends with a model of Japan, its data, calibration, solution, and exercises centered around a recent value added tax reform in Japan.

The code included with the manual is written in BASIC. An instructor's diskette contains solutions to every end-of-chapter exercise. The text underwent peer review.
Two versions are available: (1) the original 16-bit code for either Microsoft QuickBASIC or the QBASIC included with Windows 95, and (2) 32-bit VisualBasic code that requires Microsoft VB5 or VB6. Please indicate clearly when ordering which version is desired.